Rahul Gandhi's electoral promise and the curse of handout politics

Just as in Feb 2006, when the Congress inaugurated the politics of entitlement with NREGS, it has now given a big push to the politics of handouts, even if that constrains the state's fiscal capacity

Whatever may be its impact on the forthcoming general elections, Congress President Rahul Gandhi’s poll promise on Monday to offer up to Rs 72,000 of annual income support to almost 50 million poor families is an inflexion point for India’s electoral politics. Make no mistake about it. Just as in February 2006, when the Congress had inaugurated the politics of entitlement with its national rural employment guarantee programme, it has now given a big push to the politics of handouts, triggering a possible chain reaction from other political parties and seriously constraining the state’s fiscal capacity.
 
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